How would Sensible Tax Reform affect Americas international indebtedness?
Americas unwillingness to live within its means is disgraceful! It undermines our economic strength. It weakens our government. It even weakens our own ethical principles. We used to be a nation of thrift. Our citizens saved 8-10% or more of their income. Businesses had much lower debt ratios. Our government ran deficits that were much lower relative to the size of our economy, even running surpluses in the late 1990s. Now we have become a nation of spendthrifts. The savings rate of individuals hovers around 0%, while household debt skyrockets. Businesses borrow aggressively, even borrowing to buy back their own stock. And, since the early 2000s, our federal government has thrown all semblance of fiscal discipline away as it runs massive deficits year after year. The unwillingness of Americans to save, coupled with our annual international-trade deficits of $700 billion, forces American businesses and the federal government to borrow heavily abroad. The federal governments debt alone i
